On June 28, Dida Travel (HK:02559) officially landed on the Hong Kong Stock Exchange, becoming the first share of shared mobility in China, with CICC, Haitong Securities and Nomura Securities as joint sponsors. Based on the issue price, the total market capitalization of Dida Travel is approximately HK$6 billion.
According to the announcement of the allotment results, Dida Travel offered 39.091 million shares globally in this IPO. Among them, 19,545,500 shares were offered internationally, 19,545,500 shares were offered to the public, and the public offering was subscribed 112.9 times during the IPO stage. The final offering price was HK$6 per share, and the net proceeds from the global offering were approximately HK$182 million.
Focusing on ride-hailing and smart taxis, Dida Travel has been in business for ten years, and has experienced the mobility industry from the ascendant to thousands of households. Today, Dida Chuxing has become the first shared mobility platform in China to be successfully listed, which not only gives companies a new starting point, but also is a great encouragement for the entire mobility industry.
For Dida Travel, listing is a carefully selected road, and a collective review of Tick Travel's strategic path, original mission, business model, financial health, development quality and future growth potential. Being able to be the first to go public through layers of review fully proves that Dida Travel has been fully recognized by all parties in the above aspects, which will also provide reference and guidance for more travel platforms to promote the listing process in the future.
On the first day of listing, Dida Travel chose to celebrate with investors and all employees, and held a unique listing bell ringing ceremony, and at the same time, Dida Travel also issued a letter of thanks to users, taxi industry drivers, companies and industry associations with the theme of "You and I go together, so that there are no empty seats on the road, and thank every fellow Tick traveler".
The letter said: "In the journey of making the travel ecosystem more efficient and environmentally friendly, and making travel more warm and pleasant, we pursue the long-term and pay attention to the quality of development; We see ride-sharing and taxis as a social enterprise. We firmly believe that on the development path of 'real ride-hailing' and 'smart taxi', we will usher in greater space for value creation." ”
Song Zhongjie, Founder and Chief Executive Officer (CEO) of Dida Chuxing, said: "Listing on the main board of the Hong Kong Stock Exchange is not only an important milestone in our development journey, but also a new starting point. We will continue to move forward with firmer beliefs, more innovative thinking and more fighting spirit. ”
Song Zhongjie emphasized, "We will redouble our efforts to create greater value for society, users, shareholders and employees, and realize the vision of 'no empty seats on the road' earlier."
As the first travel platform to start making a profit as early as 2019 and the only one that has been profitable for five consecutive years, Dida Travel has six unique labels:
Insist on tapping potential and increasing efficiency without adding blockages, create greater transportation efficiency through existing vehicles on the road, and create increments in the stock
As of December 31, 2023, Dida Chuxing has helped create a total of 54.6 million unused car seats, equivalent to about 4.5% of the total number of small private passenger car seats in China.
At the same time, in 2023, the number of rides and the total transaction value of Tick Hitch will be 13.03 million and 8.6 billion yuan, respectively, a significant increase of 38.3% and 41% year-on-year.
2. High gross profit, high net profit and high cash flow, with strong self-hematopoietic ability
In 2023, Dida Chuxing's total revenue, gross profit, adjusted net profit and net cash flow will be RMB820 million, RMB610 million, RMB230 million and RMB230 million, respectively, representing year-on-year increases of 43.2%, 41.6%, 166.3% and 114.4%, respectively.
In 2023, Dida Chuxing's gross margin and adjusted net profit margin reached 74.3% and 27.7%, respectively. This shows that Tick Travel has strong self-hematopoietic ability and sustained profitability beyond the cycle.
3. Unique asset-light business model and leading unit economic model, small capital leverages big growth
Based on the mutually beneficial travel mode of not owning and leasing vehicles, car owners and passengers sharing travel costs, Dida Chuxing can leverage business growth at a very low cost, promote business scalability while maintaining profitability, and achieve unit economy and operating leverage ratio higher than other travel platforms.
According to the Frost & Sullivan Report (hereinafter referred to as the Sullivan Report), in 2021, 2022 and 2023, the total amount of Tick Hitch owner subsidies and rideshare passenger user rewards accounted for only 1.8%, 1.9% and 1.8% of the total transaction value of the rideshare platform in the same year, far lower than the average of 16.7% of the total platform transaction value paid to drivers and passengers in online ride-hailing.
Leading cost control capabilities, R&D expenses accounted for 14.9% in 2023
Since its establishment, Dida Travel has always maintained efficient cost control capabilities and capital use efficiency. According to the prospectus, in 2023, the service rate of Tick Hitch will be 9.7%, which is lower than the industry average of 9.8%, and at the same time, the commission rate of Tick Hitch owners is as high as 89.7%, which is not only much higher than the average level of 70.3% of online car-hailing, but also higher than the average of 89.5% of the ride-hailing industry, achieving the maximum benefit of car owners.
In addition, from 2021 to 2023, the scale of sales and operating expenses of Dida Chuxing has decreased year by year, which is mainly due to the improvement of the promotion evaluation mechanism to improve the efficiency of marketing activities. At the same time, R&D expenses in 2021-2023 will grow against the trend, increasing by 36.7% year-on-year in 2023, accounting for 14.9% of the total revenue in the same year.
5. Innate ESG genes to enhance multi-party harmony and win-win results
At the beginning of its establishment, Dida Travel set up the vision of "making there no empty seats on the road", and deeply practiced the mission of "making the travel ecosystem more efficient and environmentally friendly, and making travel more warm and pleasant". Not only did it participate in the joint compilation of the first group standard for carbon emission reduction of ride-hailing, "Technical Specifications for the Assessment of Greenhouse Gas Emission Reductions in Private Passenger Car Carpooling Projects", which was promoted in 2022, but also built a unique cultural ecology of ride-sharing through a series of innovative mechanisms such as ticking safflower, so as to enhance goodwill and social trust and harmony between strangers.
In addition, as early as 2019, Dida Chuxing jointly launched the first Hitch User Committee, and in 2020, it jointly launched the first "National Hitchhiker Day" with a number of institutions and organizations, bringing together the forces of all parties to promote the healthy, prosperous and sustainable development of the new hitchhiking business format, and promote the co-construction, co-governance and sharing of the industry.
In 2023, Tick Hitch users will reduce carbon emissions by about 1.3 million tons, which is equivalent to planting about 1.6 million acres of trees. As a thank-you mechanism for hitchhiking, nearly 4.7 million flowers have been sent to each other so far.
In 2023, Tick Hitch users will reduce carbon emissions by about 1.3 million tons, which is equivalent to planting about 1.6 million acres of trees. As a thank-you mechanism for hitchhiking, nearly 4.7 million flowers have been sent to each other so far.
6. A management team that adheres to long-termism and strategic foresight, and there are many star investors
As the second largest ride-hailing platform in China, Dida Chuxing has attracted a number of well-known investment institutions and enterprises since its establishment, including NIO Capital, IDG, Schunk Investment, BitAuto, Hillhouse Capital, JD.com and Ctrip.
At the same time, the management team of Tick Travel has been cooperating sincerely for many years, and is a long-term adherent and a remodeler of shared travel, insisting on starting from the origin of solving the fundamental challenges faced by urban transportation to create a sustainable and win-win travel ecology.